|
Name
|
AUM
|
3Y Returns
|
|
|---|---|---|---|
| ₹9,252.62 cr | 11.48 % | ||
| ₹9,252.62 cr | 11.48 % | ||
| ₹1,04,016.21 cr | 13.98 % | ||
| ₹1,04,016.21 cr | 13.74 % | ||
| ₹9,573.75 cr | 11.15 % | ||
| ₹9,573.75 cr | 11.15 % | ||
| ₹9,573.75 cr | 10.27 % | ||
| ₹70,569.60 cr | 12.01 % | ||
| ₹70,569.60 cr | 12.01 % | ||
| ₹1,016.77 cr | 9.15 % |
The balanced advantage fund is a form of hybrid mutual fund which invests in both stocks and bonds. The balanced advantage fund does not follow a particular formula for investment, unlike some other forms of hybrid funds.
Balanced advantage mutual funds vary the level of investment in stocks and bonds depending on the state of the markets. If markets appear overvalued, the fund will reduce investments in stocks and vice versa.
It could be an ideal investment choice for those who would like to participate in the stock market but still have a way of controlling risk through bond investments.
Mutual Fund Balanced Advantage Features are primarily centered on the concept of dynamic asset allocation. Mutual funds that practice this method are able to strike a balance between growth and risk management through allocations in equities and debentures.
This is because they allocate their funds in both equity and debenture, and therefore an investor is able to invest in two different asset classes from one mutual fund scheme.
It is a dynamic allocation process in which the fund manager can increase or decrease the allocation to equity according to valuations or market trends or internal models.
These funds are less risky compared to purely equity funds, but still not risk-free.
The balanced advantage mutual fund achieves this through shifting its asset allocation ratio between equity and debt. The fund manager assesses the market using a number of market metrics such as valuations and risk models in order to allocate funds to each one.
If the markets are experiencing sharp upward movements or are highly valued, the fund will shift more towards debt or hedged positions, which will minimize some risk when the markets are performing poorly.
If the markets become favorable for investing, the fund manager will shift back the assets allocation to equities.
Advantage funds that have balanced risks may be appropriate for investors who would like to invest in equities but are not comfortable enough with all the risks of straight equity funds. Such funds could be suitable for medium to long-term planning.
Such types of funds could suit investors who are in favor of an asset management portfolio. Rather than moving money from equity to debt by themselves, investors give the responsibility to the fund manager to balance the portfolio.
The advantage funds could also be ideal for novice equity investors as they provide some sort of moderation in market linked investment.
Balanced advantage funds reduce some risks through asset allocation, but they do not remove risk completely. Since they invest in equity and debt, both market risk and interest rate risk may affect returns.
The fund’s performance also depends on the asset allocation model. If the model does not respond well to changing market conditions, returns may be lower than expected.
There may also be tax and liquidity considerations. Some funds may have exit loads, and taxation can differ depending on the fund’s equity exposure and the investor’s holding period.
The taxation of balanced advantage mutual funds is based upon the asset allocation of the fund. In case, the scheme falls under the equity category, then the tax laws of the equity mutual fund may come into play at the time of redemption of the units.
In case, the scheme is classified as equity-oriented, then short-term capital gains will be levied in case of selling of units within a year. Long-term capital gains will apply for periods more than 12 months, and the gain amount beyond the exemption limit will be taxable.
In case, the scheme is not equity-oriented, then the debt fund tax laws may come into play.
You can invest in balanced advantage funds through Bajaj Broking by using the mutual funds section on the platform. Before investing, compare funds based on returns, risk, expense ratio and investment approach.
Log in to your Bajaj Broking account and search for balanced advantage funds. Review the fund details, including past performance, portfolio allocation, exit load and minimum investment amount.
Select the fund, choose lump sum or SIP, enter the amount and confirm the investment. After investing, track the fund regularly and review whether it still matches your goal.
A balanced advantage fund invests in both equity and debt, but the allocation is not fixed. The fund manager can change the mix based on market conditions, valuation levels and the fund’s strategy.
Balanced advantage funds offer equity exposure with some risk control through debt or hedged positions. They may help investors take part in market growth while reducing full exposure to equity volatility.
Balanced advantage funds may be more suitable for medium- to long-term investors. A horizon of at least three years may help investors deal better with market ups and downs.
The asset allocation is usually decided through the fund manager’s model. It may consider market valuation, volatility, interest rates, equity outlook and other indicators before changing equity or debt exposure.
The minimum amount can vary from one fund to another. Investors should check the fund details on Bajaj Broking before investing, as SIP and lump sum minimums may be different.
Yes, many balanced advantage funds allow SIP investments. SIPs let investors invest a fixed amount at regular intervals instead of investing the full amount at one time.
You can track your investment through your Bajaj Broking account. Check the mutual fund portfolio section to view current value, returns, SIP status and other investment details.
Mutual Fund Categories |
|---|
| Debt Funds |
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| Hybrid Funds |
| Solution Oriented Funds |
Mutual Fund Sub Category |
|---|
| Large Cap Funds |
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| Small Cap Funds |
| Arbitrage Funds |
| Aggressive Hybrid Funds |
| Banking and PSU Funds |
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